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Pacific pioneers: Asian financial institutions enter Mexico

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Mexico's banking sector, newly open to foreign entities, draws Asia-based financial institutions for multiple reasons.

Pacific pioneers: Asian financial institutions enter Mexico

Asian banks are crossing the Pacific as some of the primary pathfinders in Mexico's newly open financial services markets.

By Francisco Garcia-Naranjo GonzálezFrancis Zou and Mariel Martínez Zárate

For most of Mexico's history, foreign state-owned entities were not permitted to participate in the capital ownership of a Mexican bank. This meant that Mexico's heavily regulated financial services industry was effectively closed to all banks whose owners or investors included foreign sovereign entities.

This changed in 2014, when Mexican legislative reforms began allowing these banks to establish subsidiary operations in Mexico in limited circumstances.

Almost immediately, Asian banks began crossing the Pacific as some of the primary pathfinders in Mexico's newly open financial services markets.

The trends that initially drew Chinese, South Korean and other Asian financial institutions to set up their own banking institutions in Mexico continue in the current investment climate. These include opportunities to provide financing support for Asia-based multinational manufacturers and other Asia-based corporations in Mexico.

Depending on political and trade developments over the next few years, the growth potential for Asian financial institutions in Mexico could continue to increase even further.

Asian banks were among the first to take advantage of new opportunities for foreign financial institutions in Mexico.

Legislative Reforms Open Mexico’s Financial Sector to Foreign Institutions

In 2014, the Mexican government announced comprehensive reforms of the regulations governing financial institutions.

umbrella ceiling

Pan-Pacific Pathfinders: Asian Banks, Mexico and the US

Asian banks were among the first to take advantage of these newly available opportunities for foreign financial institutions in Mexico.

Traditional lion dance mascot

Challenges and Creativity: Establishing a Foreign-owned Bank Subsidiary in Mexico
 

Obtaining the authorization to establish or acquire a bank in Mexico requires creativity, a deep understanding of Mexican regulatory authorities' procedures and a patient investment approach.

Mexico Central Bank

Checklist: How to Set Up and Operate an Asian Bank in Mexico

Establishing a bank in Mexico can be time-consuming and present varying detailed challenges, depending on a bank’s individual circumstances.

Mexico City
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